Iran Press/America: Wall Street's main indices slid after Fed chief Jerome Powell said the US economic recovery may be slower than desired in the aftermath of the pandemic but should rebound "substantially" once the outbreak is reined in.
As the shutdowns drag on, they could cause "lasting damage" to the US economy and more policies may be needed to deal with that possibility, including spending beyond the nearly $3 trillion already approved by Congress, he warned.
Chris Beauchamp, the chief market analyst at online trading firm IG, said that "while Jerome Powell hinted at more measures to support the US economy, his warning about the speed of the recovery has sapped bullish sentiment."
Edward Moya at online currency trading firm Oanda said Powell's "downbeat remarks... burst the risk appetite balloon for many investors."
European stocks were also being mauled over concerns of the second wave of virus infections.
The recent optimism that has flowed through markets -- helped by trillions of dollars in worldwide stimulus and central bank backstopping -- has been given a jolt by data showing fresh outbreaks in South Korea, China, and Germany.
"Traders remain worried about the possibility of COVID-19 cases rising again as governments ease their restrictions in relation to the lockdowns," said market analyst David Madden at CMC Markets UK.
IG's Beauchamp said that the "resurgence of virus concerns can be seen in the list of FTSE 100 stocks that are deep in the red today. Carnival, Rolls-Royce, Intercontinental Hotels, and Compass are all in the line of fire if the push to reopen economies reverses and lockdowns return."
In the eurozone, Paris slumped by 2.9 percent and Frankfurt by 2.6 percent.
Meanwhile, London's benchmark FTSE 100 index shed 1.5 percent as official data showed the British economy contracted by 2.0 percent in the first quarter on the back of the COVID-19 outbreak.
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